WATCH THE VIDEO HERE Oil prices fell by 2 per cent on Monday as the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) will proceed with a planned output increase in April amid worries about US tariffs could hurt global economic growth and crude oil demand. During the session, Brent futures tumbled by $1.19 or 1.6 per cent to settle at $71.62 a barrel and the US West Texas Intermediate (WTI) crude futures declined by $1.39 or 2.0 per cent to trade at $68.37 per barrel. Reuters reported that OPEC+ has decided to proceed with a planned April oil output increase. The group has been cutting output by 5.85 million barrels per day, equal to about 5.7 per cent of global supply, since 2022 in order to support the market. The decision comes as US President Donald Trump renews his calls for lower oil prices, pressuring Saudi Arabia and its allies to pump more. The production plan is to slowly phase out the 2.2 million barrels per day in cuts from April to September 2026. The US is drawing up a plan to potentially give Russia sanctions relief as President Trump seeks to restore ties with the Vladimir Putin-led country and stop the war in Ukraine. This is as Britain said several proposals had been made for a truce in fighting between Ukraine and Russia, after France floated a plan for a one-month pause leading to peace talks. President Trump also imposed 25 per cent tariffs on imports from Mexico and Canada along with a doubling of duties on Chinese goods to 20 per cent, creating a new trade conflicts with the top three US trading partners. Market analysts say Canada’s oilfield drilling and services sector will be affected. Canadian Prime Minister Justin Trudeau said it would respond with immediate 25 per cent tariffs on over $20 billion worth of US imports, adding that it would follow with more if tariffs were still in place in 21 days. Mexico’s President Claudia Sheinbaum said her country was ready for whatever decision Washington reached while China, the world’s largest importer, said it was preparing countermeasures to tariffs. Meanwhile, these tariffs have raised inflation worries at the US Federal Reserve and could lead the US central bank to keep interest rates higher for longer, which could slow economic growth and energy demand.
OPEC+ Supply Plans, US Tariffs Weaken Oil Prices
